ZAKAT ON BUSINESS
The computation of Zakat on Business is based on the *Working Capital Model (Shariah) that includes current assets, excludes current liabilities, and considers adjustments at year end.
The Accounting and Auditing Organisation for Islamic Financial Instituitions (AAOIFI) FAS 9 sets out accounting rules related to Zakat on Business.
Only the Muslim’s share of the business is subjected to Zakat.
Non-Halal assets and activities are not subjected to Zakat.
Haul is based on asset value calculated from the initial inception or start of business until the completion of one whole year, according to Hijrah (355 days) or Gregorian (365 days) calendar.
Nisab valuation (basic minimum value) is calculated based on the current value of 86 gram of gold.
Assets that are fully owned physically (hiyazah) or full management control of the assets (tasaruff).
The assets must have growth potentials.
The intention or purpose for business must be made when an asset becomes part of the business that is conducted in order to gain profit.
Other Types of Zakat Harta
Zakat on Savings
Zakat on Gold (Intended for Usage)
Zakat on Gold (Not Intended for Usage)
Zakat on Insurance
Zakat on Shares
Zakat on Business
Zakat Fitrah
GUIDE ON ZAKAT ON BUSINESS
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